03 Identify and explain two possible reasons why VXH has grown quickly. [6]

[Sir Afzal Shad]

VXH produces a range of soft drinks made from fruit using batch production. VXH uses specialisation in its factory. The business has grown quickly over the last two years. VXH has increased the number of production workers from 40 to 80. This has increased the span of control for each manager. It has been difficult for VXH to keep workers motivated. The Human Resources Manager has to decide whether it is better to use job rotation or financial bonuses to improve employee motivation.

03 Identify and explain two possible reasons why VXH has grown quickly. [6]

Possible Points:
[KN] Due to an increase in demand of soft drinks.
[APP] Since number of workers are doubled, therefore we can say there is more customers are buying the soft drinks from the business. This may increase the market share of VXH.

[KN] Due to higher quality drinks been offered to the customers.
[APP] Since VXH employees are specialized, which means higher quality, less mistakes and less cost of production. This factor could have increased the competitiveness of the business.

[Muzamil Ahmed]

[KN] : VXH may have grown quickly because it uses specialisation in its factory.
[APP] : All the workers focus on one specific task in producing the soft drinks which increases their speed and skill in the part of the process.
[AN] : This would lead to faster production fewer mistakes, and higher output helping VXH to get more customer demand and grow quickly.
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[KN] : VXH may have grown quickly because the number of workers increased from 40 to 80
[APP] : With more workers VXH can complete more production tasks and run machines for longer and produce large quantities of soft drinks.
[AN] : Since, There are more workers VXH can produce drinks more quickly in larger quantities.this helps the business control increasing customer demand and increase sales and also grow at a faster rate. which will improve the businesses production rates.

[Shahmir Arshad]

[KN] Increase in demand of soft drinks.
[APP] Since no of workers are doubled therefore we can there is more customers are buying softdrinks from business.
[AN] This may increase the market share of VXH.

[KN] Higher quality of drinks been offered to customers.
[APP] Since VXH employees are specialized which means it has higher quality with fewer mistakes which would lead to less cost of production.
[AN] This factor would lead to have increase in competitiveness of business.

Examiner Comments:
> Add 3 elements in each AN